Knowee
Questions
Features
Study Tools

Fill in the Blank QuestionFill in the blank question.If a company has $2,000,000 in average assets, and desires to earn a return on investment of 30%, the company will need to earn income of $.

Question

Fill in the Blank QuestionFill in the blank question.If a company has 2,000,000inaverageassets,anddesirestoearnareturnoninvestmentof302,000,000 in average assets, and desires to earn a return on investment of 30%, the company will need to earn income of .

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the income a company needs to earn based on its desired return on investment, you can use the following formula:

Income = Average Assets * Desired Return on Investment

In this case, the company's average assets are $2,000,000 and the desired return on investment is 30% (or 0.30 in decimal form).

So, the calculation would be:

Income = $2,000,000 * 0.30

Therefore, the company will need to earn an income of $600,000 to achieve a 30% return on its average assets.

This problem has been solved

Similar Questions

Fill in the Blank QuestionFill in the blank question.A manufacturing division has an average assets of $1,800,000 and income of $720,000. The division's return on investment is %.

Macey, Inc.'s investment center had average operating assets of $350,000, revenues of $1,050,000 and net operating income of $70,000. Return on investment is Blank______.Multiple choice question.5%20%10%6.7%

A growing chain is trying to decide which store location to open. The first location (A) requires a $500,000 investment in average assets and is expected to yield annual income of $75,000. The second location (B) requires a $200,000 investment in average assets and is expected to yield annual income of $38,000.(1) Compute the expected return on investment for each location.

Multiple Choice QuestionA division has residual income of $350,000. If the division has income of $600,000 and $2,500,000 in average assets, what is the target income %?Multiple choice question.8%15%10%25%

An investor has $500,000 to spend. Three alternative investments have been identified, earning 15%, 10% and 18%, respectively. A goal has been set to earn average return of 15% on the total investment. In investment alternative 3, the investor invests 30% of the total investment. Determine the amount of money which should be invested in each option to satisfy the requirements of the investor.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.